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Cost of Compliance Study for Trans-Border Trucking in Canada

Cost of Compliance Study for Trans-Border Trucking in Canada

Since 2005, there have been significant changes to policies and procedures concerning trans-border trucking between Canada and the United States. As of 2012, Canada had 12 such procedures, including Free and Secure Trade (FAST), Partners in Protection (PIP) and Customs-Trade Partnership Against Terrorism (C-TPAT).

HDR conducted a national study to estimate the magnitude of the cost to the Canadian trucking industry to comply with each procedure. Costs included non-monetary costs, such as time delays, and monetary costs, such as fees charged and extra equipment or personnel needed. We conducted a national survey to collect the experiences of 230 carriers, drivers and other stakeholders. Survey results were used to populate a model of costs incurred by the trucking industry and to qualitatively assess the industry’s experiences of the various procedures and trends.

The study showed that most of the respondents, carriers, drivers and other stakeholders were generally familiar with the procedures. It also revealed that the costs of cross-border compliance were significant; however, the majority of respondents tended to be supportive of the procedures already in place. These results provided Transport Canada an insightful perspective of current procedures and will help them make more informed decisions regarding trans-border trucking policies going forward.